Bitcoin Is Repeating Its 2023 Playbook, Says Analyst — But Glassnode Spots A $14B Liquidity Drain

Bitcoin (BTC) prices held around $73,500 early Thursday, with analyst Michaël van de Poppe saying that the top cryptocurrency has been "copy/pasting the exact price action from 2023" - with the token holding near its 200-day moving average.

MN Fund Founder van de Poppe said that Bitcoin had made a strong move up as "the first step into the bull cycle." It followed that with "another sweep higher, with a clear higher high," he said.

According to him, Bitcoin was sweeping its recent low and "finding support at the 200-Day MA." He expected any recovery to be quick, saying, "Once we're seeing a reversal, it might go super fast, as there's a ton of short liquidity ready to be pushed out of the market."

Bitcoin's price was flat over the past 24 hours. On Stocktwits, the retail sentiment around BTC moved to 'bearish' from 'extremely bearish' zones, while chatter around it stayed at 'normal' levels over the past day.

Glassnode Sees Shorts Building

Glassnode's weekly report backed part of that view, pointing that open interest (OI) has rebuilt to its September high even as Bitcoin fell about 15%, suggesting traders have added short positions into the decline, the report said. If the price turned higher, those shorts would have to be bought back, Glassnode added.